BIG DEFICITS

Ashburton Guardian, Volume 52, Issue 81, 15 January 1932, Page 2

BIG DEFICITS

HOSPITAL BOARDS’ FINANCE. GOVERNMENT AID WANTED. (Special to the “ Guardian.”) WELLINGTON. January! 14. The unemployment relief burden has driven the principal Hospital Boards into a position in which they are facing ail aggregate deficit of £120,000. This was represented ot the Prune Minister (the Rt. Hon. G. W. Forbes)', the Minister of Unemployment (the Right Hon. J. G. Coates), and the Minister of Health (the Hon. J. A. Young), hv the executive of the Hospital Boards’ Association.

Mr IV. Wallace (chairman of the Auckland Board), described the position as unprecedented. He said that the problem had grown to a tremenlous extent. The boards had previously indicated to the Government that they must run into a deficit of £IOO,OOO owing to unemployment relief After nine "months’ actual experience, the Wellington Board must fate a deficit at' the end of the year of £30,000, Auckland £60,000, and North Canterbury £IB,OOO. On top of this, Dunedin seemed now to have reached the; spine position as the other centres with unemployed demanding relief. So far, they had been able to avoid this payment. The Auckland Board had overspent its budget by £27,440 in nine months. f, ■

Impossible to Carry On. “We don’t want to harass the Government, but it will be impossible to carry on after the end of this month,” he said. 4‘The subsidy and levy will be all in, and we have two months to go and nothing to meet it.’ The position had been made worse by enforced reductions ini the levies. The Auckland Board had reduced its demands on local bodies by £24,000, hut lie doubted if that, was passed on. If the Hospital Boards had to carry the burden of unemployment relief, the money nVust come from the Unemployment Fund. The boards only paid sufficient to keep body' and soul together. They preferred’ to be relieved of but, having the organisation, they: would continue if money were provided. „ , TTT . Mr Castle (chairman of tlie \\ elpngton\ Board), declared that liis board was netting tired of the situation. So many unemployed were concentrated in the centres that they were likely to get somewhat out of hand unless the- situation were met. There was no pleasure in being on a Hospital Board now. Mr Forbes : There is no pleasure m holding any responsible position. Short, of Clothing and Food. Mr Otley (chairman of the North Canterbury Board), declared that it was impossible to deal with unemployed in the present office premises. Relief was once handled in a few hours ' weekly, but last week 560 cases had Jo be dealt with. The staff was greatly overworked. Things eased somewhat at Christmas owing to the Rotary effort, but people now were short ot clothing as well as food. Every week the relief workers had no job they must/be fed, otherwise there would be a riot. < Thon"h his board insisted on work m return for rations, it was now ™P os ' sible to find jobs. It was evident that these men would have to go into the country, whether they liked it . n °Mr Knight (chairman of the Otago* board), handed Ministers newspapers describing what he called the unemployment riot in Dunedin, when rehff was _ demanded on the principle, “Relief tor all, or nothing.” He was afraid that the unemployment position would be worse, and work impossible to findrtor these men. It cost the Dunedin City Council £6OO weekly for tools, transport and supervision. Hospital Boards could not pass on their increasing burdens; to tlieir ratepayers. - - Gofoperation Sought, The Prime Minister replied that the Government would give serious consideration to the deputation’s request. It was obliged to ask for the co-opera-tion of every section' of the community, and was appreciative of the splendid efforts made by. the hoards and social organisations. Hospital Boards’ expenses were up, and Government finance was going the other way. , The boards.had raised the question whether they should provide for the unemployed as well as the destitute. Ic was difficult to draw any distinction . \if through, unemployment men were short of necessities.

Mr Wallace: If the board assists them they are receiving the dole. Mr Forbes: Relief in food and clothing is different from a dole paid in cash. Tire Prime Minister concluded with the declaration that the Government would not allow anyone to suffer through lack of food. The deputation privately conferred on details of the situation with Ministers and Mr Jessup, chairman of tne Unemployment Board.